Holcim invests in Indonesian growth market - Construction of a new cement plant on Java

Holcim invests in Indonesian growth market - Construction of a new cement plant on Java

7 Maggio 2010

In view of the continuous economic growth in Indonesia, the Board of Directors and the Executive Committee of Holcim Ltd have decided to build a new cement plant with an annual capacity of 1.6 million tonnes in the eastern part of the main island of Java, near the city of Tuban. The investment costs will amount to around USD 450 million.

In view of the continuous economic growth in Indonesia, the Board of Directors and the Executive Committee of Holcim Ltd have decided to build a new cement plant with an annual capacity of 1.6 million tonnes in the eastern part of the main island of Java, near the city of Tuban. The investment costs will amount to around USD 450 million.

The new plant with open sea loading and unloading facilities will go into service in the first half of 2013, providing all necessary local licenses are granted in due time. This investment will allow Holcim Indonesia to keep up with the expected market growth. The new plant will ideally complement the existing production and distribution network of two cement plants and a grinding station with an annual capacity of currently 8.6 million tonnes and activities in the areas of aggregates and ready-mix concrete. As Holcim Indonesia's existing cement plants are situated in West and Central Java, the new plant will help to further optimize logistics costs and open up markets cost-efficiently in East Java, Kalimantan and the eastern islands of Indonesia.

After the Asian crisis in the 90s, the Indonesian economy has continuously recovered. In the years 2000 to 2009, the gross domestic product grew by an annual mean of 5 percent and the cement consumption rose over-proportionately. The highest volume growth was recorded on the main island Java. According to forecasts, growth in the construction industry will further accelerate in coming years.

In business year 2009, Holcim Indonesia achieved a turnover of around USD 500 million and currently employs a workforce of some 2,500.